HKFRS 16 Leases sets out the principles for the recognition, measurement, presentation and disclosure
|
|
- Magdalene Wilcox
- 6 years ago
- Views:
Transcription
1 HKFRS 16 Leases Introduction HKFRS 16 Leases sets out the principles for the recognition, measurement, presentation and disclosure of leases. The objective of HKFRS 16 is to ensure that lessees and lessors provide relevant information in a manner that faithfully represents leasing transactions. HKFRS 16 supersedes the following Standards and Interpretations: HKAS 17 Leases ; HK(IFRIC) - Int 4 Determining whether an Arrangement contains a Lease ; HK(SIC) - Int 15 Operating Leases - Incentives ; and HK(SIC) - Int 27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The accounting model for leases in HKAS 17 requires lessees and lessors to classify their leases as either finance leases or operating leases and account for the two types of leases differently. This model has been criticised for failing to provide a faithful representation of leasing transactions. In particular, it does not require lessees to recognise assets and liabilities arising from operating leases. HKFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases (with limited exceptions). A lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. HKFRS 16 substantially carries forward the lessor accounting requirements in HKAS 17. Accordingly, a lessor continues to classify its leases as operating leases or finance leases, and account for the two types of leases differently. HKFRS Update - June 2016 Page 1 HKFRS Update - June 2016 Page 1
2 Effective Date and Transitional Provision HKFRS 16 is effective for annual reporting periods beginning on or after 1 January Earlier application is permitted for entities that apply HKFRS 15 Revenue from Contracts with Customers at or before the date of initial application. The date of initial application is the beginning of the annual reporting period in which an entity first applies HKFRS 16. An entity is not required to reassess whether a contract contains a lease at the date of initial application. It is permitted to apply HKFRS 16 to contracts that were previously identified as leases applying the transition requirements in paragraphs C5 to C18 of HKFRS 16 and not to apply HKFRS 16 to contracts that were not previously identified as leases. A lessee shall apply HKFRS 16 consistently to all of its leases either: retrospectively to each prior reporting period presented applying HKAS 8 Accounting Policies, Changes in Accounting Estimates and Errors ; or retrospectively with the cumulative effect of initially applying HKFRS 16 recognised as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the date of initial application. Comparative information shall not be restated. Scope An entity shall apply HKFRS 16 to all leases, including leases of right-of-use assets in a sublease, except for: leases to explore for or use minerals, oil, natural gas and similar non-regenerative resources; leases of biological assets within the scope of HKAS 41 Agriculture held by a lessee; service concession arrangements within the scope of HK(IFRIC) - Int 12 Service Concession Arrangements ; licences of intellectual property granted by a lessor within the scope of HKFRS 15; and rights held by a lessee under licensing agreements within the scope of HKAS 38 Intangible Assets for such items as motion picture films, video recordings, plays, manuscripts, patents and copyrights. A lessee may, but is not required to, apply HKFRS 16 to leases of other intangible assets. HKFRS Update - June 2016 Page 2
3 Portfolio application and combination of contracts An entity may apply HKFRS 16 to a portfolio of leases with similar characteristics if the entity reasonably expects that the effects on the financial statements of applying HKFRS 16 to the portfolio would not differ materially from applying to the individual leases within that portfolio. An entity shall then use estimates and assumptions that reflect the size and composition of the portfolio. An entity shall combine two or more contracts entered into at or near the same time with the same counterparty (or related parties of the counterparty), and account for the contracts as a single contract if one or more of the following criteria are met: the contracts are negotiated as a package with an overall commercial objective that cannot be understood without considering the contracts together. the amount of consideration to be paid in one contract depends on the price or performance of the other contract. the rights to use underlying assets conveyed in the contracts form a single lease component. Identifying a lease At inception of a contract, an entity shall assess whether the contract contains a lease. An entity shall reassess a contract only if the terms and conditions of the contract are changed. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration i.e. throughout the period of use, the customer has both of the following: the right to obtain substantially all of the economic benefits from use of the identified asset; and the right to direct the use of the identified asset. A customer has the right to direct the use of an identified asset only if either: (a) the customer has the right to direct how and for what purpose the asset is used; or (b) the relevant decisions about how and for what purpose the asset is used are predetermined and: i. the customer has the right to operate the asset (or to direct others to operate the asset in a manner that it determines), without the supplier having the right to change those operating instructions; or ii. the customer designed the asset (or specific aspects of the asset) in a way that predetermines how and for what purpose the asset will be used. A period of time may be described in terms of the amount of use of an identified asset (for example, the number of production units that an item of equipment will be used to produce). HKFRS Update - June 2016 Page 3
4 Separating components of a contract An entity shall account for each lease component within a contract as a lease separately from nonlease components, unless the entity applies the practical expedient stated below. The right to use an underlying asset is a separate lease component if both: the lessee can benefit from use of the underlying asset either on its own or together with other resources readily available to the lessee; and the underlying asset is neither highly dependent on, nor highly interrelated with, the other underlying assets in the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, a lessee shall allocate the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. The relative stand-alone price shall be determined on the basis of the price the lessor, or a similar supplier, would charge an entity for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the lessee shall estimate the stand-alone price, maximising the use of observable information. As a practical expedient, a lessee may elect, by class of underlying asset, not to separate non-lease components from lease components, and instead account for each lease component and any associated non-lease components as a single lease component except for embedded derivatives within the scope of HKFRS 9 Financial Instruments. For a contract that contains a lease component and one or more additional lease or non-lease components, a lessor shall allocate the consideration in the contract applying paragraphs 73 to 90 of HKFRS 15 i.e. to allocate the transaction price to each performance obligation on a relative stand-alone selling price basis. Lease term The lease term is the non-cancellable period of a lease, together with both: periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option. In assessing whether a lessee is reasonably certain to exercise or not to exercise an option, an entity shall consider all relevant facts and circumstances that create an economic incentive for the lessee. A lessee shall reassess whether it is reasonably certain to exercise or not to exercise an option upon the occurrence of either a significant event or a significant change in circumstances that is within the control of the lessee and affects whether the lessee is reasonably certain to exercise or not to exercise an option. HKFRS Update - June 2016 Page 4
5 Lessee accounting 1 Right-of-use asset At the commencement date, a lessee shall initially measure the rightof-use asset at cost comprising: the amount of the initial measurement of the lease liability; any lease payments made at or before the commencement date, less any lease incentives received; any initial direct costs incurred; and an estimate of costs to be incurred in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the lease. A lessee shall subsequently measure the right-of-use asset applying the cost model unless the fair value/revaluation model is used. To apply the cost model, the right-of-use asset is measured at cost: less any accumulated depreciation and any accumulated impairment losses; and adjusted for any remeasurement of the lease liability. If a lessee applies the fair value model in HKAS 40 Investment Property to its investment property, that fair value model shall also be applied to right-of-use assets that meet the definition of investment property in HKAS 40. If right-of-use assets relate to a class of property, plant and equipment to which the lessee applies the revaluation model in HKAS 16 Property, Plant and Equipment, a lessee may elect to apply that revaluation model to all of the right-ofuse assets that relate to that class of property, plant and equipment. HKFRS Update - June 2016 Page 5
6 Lessee accounting 2 Lease liability At the commencement date, a lessee shall initially measure the lease liability at the present value of the lease payments that are not paid at that date. The lease payments shall be discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the lessee s incremental borrowing rate shall be used. The lease payments included in the measurement of the lease liability comprise the following payments: fixed payments (including in-substance fixed payments, i.e. payments that may, in form, contain variability but that, in substance, are unavoidable), less any lease incentives receivable; variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; amounts expected to be payable by the lessee under residual value guarantees; the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. A lessee shall subsequently measure the lease liability by: increasing the carrying amount to reflect interest on the lease liability; reducing the carrying amount to reflect the lease payments made; and remeasuring the carrying amount to reflect any reassessment or lease modifications, or to reflect revised in-substance fixed lease payments. Interest on the lease liability in each period during the lease term shall be the amount that produces a constant periodic rate of interest on the remaining balance of the lease liability. HKFRS Update - June 2016 Page 6
7 Lessee accounting 3 Reassessment of lease liability A lessee shall remeasure the lease liability to reflect changes to the lease payments and recognise the remeasurement amount as an adjustment to the right-of-use asset. If the carrying amount of the right-ofuse asset is zero, reduction in the measurement of the lease liability is recognised in profit or loss. A lessee shall remeasure the lease liability by discounting the revised lease payments using a revised discount rate, for either: a change in the lease term; or a change in the assessment of an option to purchase the underlying asset. The revised discount rate shall be the interest rate implicit in the lease for the remainder of the lease term. If that rate cannot be readily determined, the lessee s incremental borrowing rate at the date of reassessment shall be used. A lessee shall remeasure the lease liability by discounting the revised lease payments using an unchanged discount rate, for either: a change in the amounts expected to be payable under a residual value guarantee; or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, including for example a change to reflect changes in market rental rates following a market rent review. If the change in lease payments results from a change in floating interest rates, the lessee shall use a revised discount rate that reflects changes in the interest rate. HKFRS Update - June 2016 Page 7
8 Lessee accounting 4 Lease modifications A lessee shall account for a lease modification as a separate lease if both: the modification increases the scope of the lease by adding the right to use one or more underlying assets; and the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract. For all other lease modifications, at the effective date of the lease modification a lessee shall: allocate the consideration in the modified contract on the basis of the relative stand-alone price of the components; determine the lease term of the modified lease; and remeasure the lease liability by discounting the revised lease payments using a revised discount rate. The revised discount rate shall be the interest rate implicit in the lease for the remainder of the lease term. If that rate cannot be readily determined, the lessee s incremental borrowing rate at the effective date of the lease modification shall be used. The lessee shall account for the remeasurement of the lease liability by: decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease that decrease the scope of the lease and recognise in profit or loss any resulting gain or loss; and making a corresponding adjustment to the right-of-use asset for all other cases. HKFRS Update - June 2016 Page 8
9 Lessee accounting 5 Recognition exemption A lessee may elect not to apply the above lessee accounting requirements to: short-term leases; and leases for which the underlying asset is of low value. A short term lease is a lease that, at the commencement date, has a lease term of 12 months or less. A lease that contains a purchase option is not a short-term lease. The assessment of whether an underlying asset is of low value is performed on an absolute basis and based on the value of the asset when it is new. The assessment is not affected by the size, nature or circumstances of the lessee. Examples of low-value underlying assets can include tablet and personal computers, small items of office furniture and telephones. At the time of reaching decisions about the exemption, the IASB had in mind leases of underlying assets with a value, when new, in the order of magnitude of US$5,000 or less. An underlying asset can be of low value only if: the lessee can benefit from use of the underlying asset on its own or together with other resources readily available to the lessee; and the underlying asset is not highly dependent on, or highly interrelated with, other assets. If a lessee subleases an asset, or expects to sublease an asset, the head lease does not qualify as a lease of a low-value asset. When applying the recognition exemption, a lessee shall recognise the lease payments as an expense on either a straight-line basis over the lease term or another systematic basis. Another systematic basis is used if that basis is more representative of the pattern of the lessee s benefit. For short-term leases, the lessee shall consider the lease to be a new lease if: there is a lease modification; or there is any change in the lease term. The election for short-term leases shall be made by class of underlying asset to which the right of use relates. The election for leases for which the underlying asset is of low value can be made on a leaseby-lease basis. HKFRS Update - June 2016 Page 9
10 Lessee accounting 6 Presentation A lessee shall either present in the statement of financial position, or disclose in the notes: (a) right-of-use assets separately from other assets or: i. include right-of-use assets within the same line item as that within which the corresponding underlying assets would be presented if they were owned; and (b) ii. disclose which line items in the statement of financial position include those rightof-use assets. lease liabilities separately from other liabilities or disclose which line items in the statement of financial position include those liabilities. Right-of-use assets that meet the definition of investment property shall be presented in the statement of financial position as investment property. In the statement of profit or loss and other comprehensive income, a lessee shall present interest expense on the lease liability separately from the depreciation charge for the right-of-use asset. In the statement of cash flows, a lessee shall classify: cash payments for the principal portion of the lease liability within financing activities; cash payments for the interest portion of the lease liability applying the requirements in HKAS 7 Statement of Cash Flows for interest paid; and short-term lease payments, payments for leases of low-value assets and variable lease payments not included in the measurement of the lease liability within operating activities. 7 Disclosure Requirements For details of the disclosure requirements for lessees, please refer to paragraphs 51 to 60 of HKFRS 16. HKFRS Update - June 2016 Page 10
11 Lessor accounting 1 Lease classification A lessor shall classify each lease as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. Otherwise, it is classified as an operating lease. Lease classification is made at the inception date and is reassessed only if there is a lease modification. Finance leases At the commencement date, a lessor shall recognise assets held under a finance lease in its statement of financial position and present them as a receivable at an amount equal to the net investment in the lease. The lessor shall use the interest rate implicit in the lease to measure the net investment in the lease. 2 The lease payments included in the measurement of the net investment in the lease comprise the following payments for the right to use the underlying asset during the lease term that are not received at the commencement date: fixed payments (including in-substance fixed payments), less any lease incentives payable; variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; any residual value guarantees provided to the lessor by the lessee, a party related to the lessee or a third party unrelated to the lessor that is financially capable of discharging the obligations under the guarantee; the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. A lessor shall recognise finance income over the lease term, based on a pattern reflecting a constant periodic rate of return on the lessor s net investment in the lease. A lessor shall account for a modification to a finance lease as a separate lease if both: the modification increases the scope of the lease by adding the right to use one or more underlying assets; and the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract. HKFRS Update - June 2016 Page 11
12 Lessor accounting For other modifications to a finance lease, a lessor shall account for the modification as follows: (a) if the lease would have been classified as an operating lease had the modification been in effect at the inception date, the lessor shall: i. account for the lease modification as a new lease from the effective date of the modification; and ii. measure the carrying amount of the underlying asset as the net investment in the lease immediately before the effective date of the lease modification. (b) otherwise, the lessor shall apply the requirements of HKFRS 9. 3 Operating leases A lessor shall recognise lease payments from operating leases as income on either a straightline basis or another systematic basis. Another systematic basis is used if that basis is more representative of the pattern in which benefit from the use of the underlying asset is diminished. A lessor shall account for a modification to an operating lease as a new lease from the effective date of the modification, considering any prepaid or accrued lease payments relating to the original lease as part of the lease payments for the new lease. Disclosure Requirements For details of the disclosure requirements for lessors, please refer to paragraphs 89 to 97 of HKFRS HKFRS Update - June 2016 Page 12
13 Sale and leaseback transactions If the fair value of the consideration for the sale of an asset does not equal the fair value of the asset, or if the payments for the lease are not at market rates, an entity shall make the following adjustments to measure the sale proceeds at fair value: any below-market terms shall be accounted for as a prepayment of lease payments; and any above-market terms shall be accounted for as additional financing provided by the buyer-lessor to the seller-lessee. CONTACT US HONG KONG OFFICE Unit & 8, Citicorp Centre, 18 Whitfield Road, Causeway Bay, Hong Kong Tel: (852) Fax: (852) info@zhcpa.hk Web: If you have any comments or require further information, please feel free to contact: Mr. Joel Chan Quality Assurance Partner ZHONGHUI ANDA CPA Limited joel.chan@zhcpa.hk Disclaimer This update is intended only to provide general information on the subject concerned and shall not be relied upon as a substitute for professional advice. ZHONGHUI ANDA CPA Limited, its partners and staff do not accept any responsibility or liability, and disclaim all responsibility and liability, in respect of the use of this update. Beijing Shanghai Tianjin Hangzhou Chengdu Nanjing Ningbo Taiyuan Shenzhen Changsha Xining Fuzhou Jinan Urumqi Hong Kong ZHONGHUI ANDA CPA LIMITED HKFRS Update - June 2016 Page 13
HKFRS 16 Leases. Disclaimer. Date 21 April 2017 Time 19:00 21:00 Venue Boys' and Girls' Clubs Association
HKFRS 16 Leases Date 21 April 2017 Time 19:00 21:00 Venue Boys' and Girls' Clubs Association www.zhtraining.com Disclaimer The materials of this seminar are intended only to provide general information
More informationInternational Financial Reporting Standard 16 Leases. Objective. Scope. Recognition exemptions (paragraphs B3 B8) IFRS 16
International Financial Reporting Standard 16 Leases Objective 1 This Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. The objective is to ensure
More informationSri Lanka Accounting Standard - SLFRS 16. Leases
Sri Lanka Accounting Standard - SLFRS 16 Leases CONTENTS from paragraph SRI LANKA ACCOUNTING STANDARD - SLFRS 16 LEASES INTRODUCTION OBJECTIVE 1 SCOPE 3 RECOGNITION EXEMPTIONS 5 IDENTIFYING A LEASE 9 Separating
More informationIFRS 16 LEASES. Page 1 of 21
IFRS 16 LEASES OBJECTIVE The objective is to ensure that lessees and lessors provide relevant information in a manner that faithfully represents those transactions. This information gives a basis for users
More informationIn December 2003 the Board issued a revised IAS 17 as part of its initial agenda of technical projects.
IFRS 16 Leases In April 2001 the International Accounting Standards Board (the Board) adopted IAS 17 Leases, which had originally been issued by the International Accounting Standards Committee (IASC)
More informationIn December 2003 the IASB issued a revised IAS 17 as part of its initial agenda of technical projects.
IFRS Standard 16 Leases In April 2001 the International Accounting Standards Board (IASB) adopted IAS 17 Leases, which had originally been issued by the International Accounting Standards Committee (IASC)
More informationExposure Draft. Indian Accounting Standard (Ind AS) 116 Leases. (Last date for Comments: August 31, 2017)
ED/Ind AS/2017/06 Exposure Draft Indian Accounting Standard (Ind AS) 116 Leases (Last date for Comments: August 31, 2017) Issued by Accounting Standards Board The Institute of Chartered Accountants of
More informationNew Zealand Equivalent to International Financial Reporting Standard 16 Leases (NZ IFRS 16)
New Zealand Equivalent to International Financial Reporting Standard 16 Leases (NZ IFRS 16) Issued February 2016 This Standard was issued on 11 February 2016 by the New Zealand Accounting Standards Board
More informationExposure Draft 64 January 2018 Comments due: June 30, Proposed International Public Sector Accounting Standard. Leases
Exposure Draft 64 January 2018 Comments due: June 30, 2018 Proposed International Public Sector Accounting Standard Leases This document was developed and approved by the International Public Sector Accounting
More information[TO BE PUBLLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
[TO BE PUBLLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 30 th March, 2019 G.S.R. (E).
More informationAASB 16: Experience the Fundamental Overhaul of Lease Accounting for Lessees
AASB 16: Experience the Fundamental Overhaul of Lease Accounting for Lessees Introduction to Session This introductory session we will: Explore the Principles of AASB 16 Learn how to Identify a Lease Work
More informationIFRS 16 : Lease accounting
IFRS 16 : Lease accounting Effective for accounting periods beginning on or after 1 January 2019 December 2017 IFRS 16: Lease accounting The IASB published the new IFRS 16 lease standard, in order to avoid
More informationInternational Accounting Standard 17 Leases. Objective. Scope. Definitions IAS 17
International Accounting Standard 17 Leases Objective 1 The objective of this Standard is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosure to apply in relation
More informationThe new IFRS 16 Leases effective as of 1 January 2019
The new IFRS 16 Leases effective as of 1 January 2019 IFRS 16 was issued by IASB on 13 January 2016. The Standard is effective as of 1 January 2019. It has not yet been adopted by the EC. This is a Standard
More informationApplying IFRS in consumer products and retail
Applying IFRS in consumer products and retail Leases standard Consumer products and retail Updated June 2017 Contents Overview 2 1. Identifying a lease 3 1.1 Definition of a lease 3 1.2 Identified asset
More informationGearing up for change New IFRS on Leases
Gearing up for change New IFRS on Leases In a nutshell The changes Lessee accounting Effective date: 1 January 2019 Limited changes to scope of IAS 17 Enhanced guidance on identifying a lease Lessor accounting
More informationA Review of IFRS 16 Leases By Tan Liong Tong
A Review of IFRS 16 Leases By Tan Liong Tong In April 2016, the MASB issued MFRS 16 Leases that is identical to IFRS 16 Leases issued by the IASB in January 2016. The effective date of this new MFRS is
More informationLKAS 17 Sri Lanka Accounting Standard LKAS 17
Sri Lanka Accounting Standard LKAS 17 Leases CONTENTS SRI LANKA ACCOUNTING STANDARD LKAS 17 LEASES paragraphs OBJECTIVE 1 SCOPE 2 DEFINITIONS 4 CLASSIFICATION OF LEASES 7 LEASES IN THE FINANCIAL STATEMENTS
More informationIFRS 16 Leases supplement
IFRS 16 Leases supplement Guide to annual financial statements IFRS December 2017 kpmg.com/ifrs Contents About this supplement 1 About IFRS 16 3 The Group s lease portfolio 6 Part I Modified retrospective
More informationIASB Staff Paper March 2011
IASB Staff Paper March 2011 Effect of board redeliberations on Exposure Draft Leases About this staff paper This staff paper indicates how the proposals in the Exposure Draft Leases would change as a result
More informationDefining Issues May 2013, No
Defining Issues May 2013, No. 13-24 FASB and IASB Issue Revised Exposure Drafts on Lease Accounting The FASB and IASB (the Boards) recently issued revised joint exposure drafts (EDs) on proposed changes
More informationHeadline Verdana Bold The evolutions of leases accounting under IFRS 16 Mariano Bruno, Carlo Laganà, Giuseppe Ambrosio, Deloitte & Touche S.p.A.
SHIPPING AND THE LAW 7^ Edition 25-26 October 2016 NAPLES Headline Verdana Bold The evolutions of leases accounting under IFRS 16 Mariano Bruno, Carlo Laganà, Giuseppe Ambrosio, Deloitte & Touche S.p.A.
More informationSSAP 14 STATEMENT OF STANDARD ACCOUNTING PRACTICE 14 LEASES
SSAP 14 STATEMENT OF STANDARD ACCOUNTING PRACTICE 14 LEASES (Issued October 1987; revised February 2000) The standards, which have been set in bold italic type, should be read in the context of the background
More informationInternational Financial Reporting Standards (IFRS)
FACT SHEET February 2011 IAS 17 Leases (This fact sheet is based on the standard as at 1 January 2011.) Important note: This fact sheet is based on the requirements of the International Financial Reporting
More informationIFRS 16 Leases. Presented by Anton van Wyk M. Com CA (SA)
IFRS 16 Leases Presented by Anton van Wyk M. Com CA (SA) Why a new IFRS for leases? Information reported about operating leases lacked transparency and did not meet the needs of users of financial statements
More informationIFRS Project Insights Leases
IFRS Project Insights Leases The IASB and FASB ( the Boards ) published a Discussion Paper (DP) setting out a proposed lessee accounting model in March 2009. The proposed accounting model has evolved since
More informationSri Lanka Accounting Standard-LKAS 17. Leases
Sri Lanka Accounting Standard-LKAS 17 Leases -516- Sri Lanka Accounting Standard-LKAS 17 Leases Sri Lanka Accounting Standard LKAS 17 Leases is set out in paragraphs 1 69. All the paragraphs have equal
More informationIFRS 15 and IFRS 16 Webinar
CPA Ireland Skillnet CPA Ireland Skillnet, is a training network that is funded by Skillnets, a state funded, enterprise led support body dedicated to the promotion and facilitation of training and up-skilling
More informationNew IASB leases standard engineering and construction
Applying IFRS New IASB leases standard engineering and construction October 2016 Contents Overview 2 1. Key considerations 3 1.1 Scope and scope exclusions 3 1.2 Definition of a lease 3 1.3 Arrangements
More informationSummary of IFRS Exposure Draft Leases
The International Accounting Standards Board (IASB) recently issued a revised exposure draft (ED) relating to leases. Once these proposals are finalized the new guidance will replace the IAS 17 Leases.
More informationApplying IFRS in Financial Services
Applying IFRS in Financial Services IASB issues new leases standard - financial services April 2016 Contents Overview 2 1. Key considerations 3 1.1 Scope and scope exclusions 3 1.2 Definition of a lease
More informationIASB issues new leases standard consumer products and retail
Applying IFRS in consumer products and retail IASB issues new leases standard consumer products and retail June 2016 Contents Overview 2 1. Key considerations 3 1.1 Scope and scope exclusions 3 1.2 Definition
More informationIn December 2003 the IASB issued a revised IAS 17 as part of its initial agenda of technical projects.
International Accounting Standard 17 Leases In April 2001 the International Accounting Standards Board (IASB) adopted IAS 17 Leases, which had originally been issued by the International Accounting Standards
More informationTechnical Line FASB final guidance
No. 2016-09 14 April 2016 Technical Line FASB final guidance How the FASB s new leases standard will affect health care entities In this issue: Overview... 1 Key considerations... 3 Scope and scope exceptions...
More informationCPA COMPETENCY MAP STUDY NOTES UPDATE TO DECEMBER 31, 2018
CPA COMPETENCY MAP STUDY NOTES UPDATE TO DECEMBER 31, 2018 Please note that several of the updates relate to changes that are not effective until 2019. For 2019 PEP Module Exams and for the CFE, you are
More informationApplying IFRS. New IASB leases standard oilfield services. December 2016
Applying IFRS New IASB leases standard oilfield services December 2016 Contents Overview 2 1. Key considerations 3 1.1 Scope and scope exclusions 3 1.2 Definition of a lease 3 1.3 Identifying and separating
More informationThe New Lease Accounting Standard. Hunter Mink, CPA, CCIFP Brian Rosenberg, CPA, MBA
The New Lease Accounting Standard Hunter Mink, CPA, CCIFP Brian Rosenberg, CPA, MBA 1 Agenda Introduction Lease Identification and Classification Lessee Accounting Other Considerations Disclosures Impact
More informationReal estate leases. How will IFRS 16 impact real estate entities? May 2016
Real estate leases How will IFRS 16 impact real estate entities? May 2016 Contents Overview 2 1. Key considerations 3 1.1 Scope and scope exclusions 3 1.2 Definition of a lease 3 1.3 Identifying and separating
More informationThe new accounting standard for leases. 27 March 2017
The new accounting standard for leases 27 March 2017 Disclaimer Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity.
More informationSLAS 19 (Revised 2000) Sri Lanka Accounting Standard SLAS 19 (Revised 2000) LEASES
Sri Lanka Accounting Standard SLAS 19 (Revised 2000) LEASES 265 Introduction This Standard (SLAS 19 (revised 2000) ) replaces Sri Lanka Accounting Standard SLAS 19, Accounting for Leases ( the original
More information2 This Standard shall be applied in accounting for all leases other than:
Indian Accounting Standard (Ind AS) 17 Leases (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Paragraphs in bold type indicate the main
More informationIFRS Update Guy Thomas, CPA, CA
IFRS Update Guy Thomas, CPA, CA D&Co IFRS update Agenda 3 new standards under IFRS IFRS 9 Financial Instruments IFRS 15 Revenue from Contracts with Customers IFRS 16 Leases Agenda Some narrow scope amendments
More informationTechnical Line FASB final guidance
No. 2016-11 14 April 2016 Technical Line FASB final guidance How the FASB s new leases standard will affect real estate entities In this issue: Overview... 1 Key considerations... 2 Scope and scope exceptions...
More informationApplying IFRS. IASB issues a new leases standard tank terminals. February 2017
Applying IFRS IASB issues a new leases standard tank terminals February 2017 Contents Overview 2 1. Key considerations 3 1.1 Scope and scope exclusions 3 1.2 Definition of a lease 3 1.3 Identifying and
More informationTechnical Line FASB final guidance
No. 2019-01 3 January 2019 Technical Line FASB final guidance How the new leases standard affects automotive entities In this issue: Overview... 1 Recent standard setting activity... 2 Key considerations...
More informationHKAS 17 Revised February 2014January Hong Kong Accounting Standard 17. Leases
HKAS 17 Revised February 2014January 2017 Hong Kong Accounting Standard 17 Leases HKAS 17 COPYRIGHT Copyright 2017 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial Reporting
More informationHKAS 17 Revised January 2017September Hong Kong Accounting Standard 17. Leases
HKAS 17 Revised January 2017September 2018 Hong Kong Accounting Standard 17 Leases HKAS 17 COPYRIGHT Copyright 2018 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial Reporting
More informationHKAS 17 Leases 1 October 2005
HKAS 17 Leases 1 October 2005 1. Objective of HKAS 17 The objective of Hong Kong Accounting Standard (HKAS) 17 Leases is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosure
More informationNew leases standard ASC 842 Lessee - operating leases. Itai Gotlieb, Partner, Professional Practice July 2017
ASC 842 Lessee - operating leases Itai Gotlieb, Partner, Professional Practice July 2017 Overview Under Accounting Standards Codification (ASC) 842, Leases, lessees recognize assets and liabilities for
More informationGASB 87 - Leases. South Carolina Association of CPAs Fall Fest November 16, 2018 Mauldin & Jenkins
November 16, 2018 Mauldin & Jenkins 800-277-0050 www.mjcpa.com GASB 87 - Leases Effective for periods beginning after December 15, 2019 - December 31, 2020 or June 30, 2021 or September 30, 2021 Amends
More informationLeases. January 25, 2016 Comments Due: May 31, Proposed Statement of the Governmental Accounting Standards Board
January 25, 2016 Comments Due: May 31, 2016 Proposed Statement of the Governmental Accounting Standards Board Leases This Exposure Draft of a proposed Statement of Governmental Accounting Standards is
More informationTechnical Line FASB final guidance
No. 2018-18 13 December 2018 Technical Line FASB final guidance How the new leases standard affects life sciences entities In this issue: Overview... 1 Key considerations... 2 Scope and scope exceptions...
More informationApplying IFRS. A closer look at the new leases standard. August 2016
Applying IFRS A closer look at the new leases standard August 2016 Contents Overview 3 1. Scope and scope exceptions 5 1.1 General 5 1.2 Determining whether an arrangement contains a lease 6 1.3 Identifying
More informationTechnical Line FASB final guidance
No. 2018-08 20 September 2018 Technical Line FASB final guidance How the new leases standard affects engineering and construction entities In this issue: Overview... 1 Key considerations... 2 Scope and
More informationOn the Horizon: Leases and Fiduciary Responsibilities
On the Horizon: Leases and Fiduciary Responsibilities Dean Michael Mead, Research Manager Florida School Finance Officers Association November 11, 2015 The views expressed in this presentation are those
More informationWEEK 6 ACCOUNTING FOR LEASES IAS 17
WEEK 6 ACCOUNTING FOR LEASES IAS 17 Learning Objectives Discuss the Classification of Leases Understand Sale and Leaseback Transactions Explain the accounting procedure in IAS 17 Highlight the disclosure
More informationIn depth A look at current financial reporting issues for PNG
www.pwc.com/pg inform.pwc.com In depth A look at current financial reporting issues for PNG February 2016 What s inside? At a glance 1 Scope 2 Identifying a lease 2 Lessee accounting 10 Lessor accounting
More informationGet ready for FRS 116: Leases
Get ready for FRS 116: Leases Chetan Hans & Eng Min Lor Grant Thornton Singapore Overview of main changes Replaces FRS 17 Leases, INT FRS 104 Determining whether an Arrangement contains a Lease, INT FRS
More informationInternational GAAP Holdings Limited Model financial statements for the year ended 31 December 2017 (With early adoption of IFRS 16)
International GAAP Holdings Limited Model financial statements for the year ended 31 December 2017 (With early adoption of IFRS 16) Appendix 1: Early application of IFRS 16 Leases Introduction This Appendix
More informationLeases. Indian Accounting Standard (Ind AS) 17. Leases
Leases Indian Accounting Standard (Ind AS) 17 Leases Contents Paragraphs OBJECTIVE 1 SCOPE 2-3 DEFINITIONS 4-6 CLASSIFICATION OF LEASES 7-19 LEASES IN THE FINANCIAL STATEMENTS OF LESSEES 20-35 Finance
More informationApplying IFRS. IASB issues a new leases standard Oil and Gas. February 2017
Applying IFRS IASB issues a new leases standard Oil and Gas February 2017 Contents Overview 2 1. Key considerations 3 1.1 Scope and scope exclusions 3 1.2 Definition of a lease 4 1.3 Arrangements entered
More informationEdison Electric Institute and American Gas Association New Lease Standard
Edison Electric Institute and American Gas Association New Lease Standard May 16, 2016 Disclaimer The information contained herein is of a general nature and is not intended to address the circumstances
More informationGASBs Presented by: William Blend, CPA, CFE
GASBs 87-89 Presented by: William Blend, CPA, CFE Leases: Statement 87 Effective Date and General Implementation Effective for Florida fiscal year end 2021. Earlier application is encouraged. Leases should
More informationPUBLIC BENEFIT ENTITY INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARD 13 LEASES (PBE IPSAS 13)
PUBLIC BENEFIT ENTITY INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARD 13 LEASES (PBE IPSAS 13) This Standard was issued on 11 September 2014 by the New Zealand Accounting Standards Board of the External
More informationTechnical Line FASB final guidance
No. 2018-15 6 December 2018 Technical Line FASB final guidance How the new leases standard affects consumer products and retail entities In this issue: Overview... 1 Recent standard-setting activity...
More informationNew Zealand Equivalent to International Accounting Standard 17 Leases (NZ IAS 17)
New Zealand Equivalent to International Accounting Standard 17 Leases (NZ IAS 17) Issued November 2004 and incorporates amendments up to and including 30 June 2011 This Standard was issued by the Financial
More informationAccounting Standards for Enterprises No Leases No. 3 [2006] of the Ministry of Finance
Accounting Standards for Enterprises No. 21 - Leases No. 3 [2006] of the Ministry of Finance Chapter I General Provisions Article 1With a view to regulating the recognition and measurement of leases, as
More informationApplying IFRS. New IASB leases standard Mining and Metals October 2016
Applying IFRS New IASB leases standard Mining and Metals October 2016 Contents Overview 2 1. Key considerations 3 1.1 Scope and scope exclusions 3 1.2 Definition of a lease 4 1.3 Arrangements entered into
More informationLeases: Overview of the new guidance
Leases: Overview of the new guidance Prepared by: Richard Stuart, Partner, National Professional Standards Group, RSM US LLP richard.stuart@rsmus.com, +1 203 905 5027 March 2, 2016 Introduction On February
More informationThe joint leases project change is coming
No. 2010-4 18 June 2010 Technical Line Technical guidance on standards and practice issues The joint leases project change is coming What you need to know The proposed changes to the accounting for leases
More informationIFRS in Focus IASB issues IFRS 16 Leases
IFRS Global office January 2016 IASB issues IFRS 16 Leases Contents Introduction Scope Definition of a lease Accounting for leases in the financial statements of lessees Accounting for leases in the financial
More informationIFRS 16: Leases; a New Era of Lease Accounting!
The journal is running a series of updates on IFRS, IAS, IFRIC and SIC. The updates mostly collected from different sources of IASB publication, seminars, workshop & IFRS website. This issue is based on
More informationUniversità degli studi di Pavia Facoltà di Economia a.a Lesson 8 International Accounting Lelio Bigogno, Stefano Santucci
Università degli studi di Pavia Facoltà di Economia a.a. 2013-2014 Lesson 8 International Accounting Lelio Bigogno, Stefano Santucci 1 IAS/IFRS: IAS17 Leasing 2 History of IAS17 October 1980 Exposure Draft
More informationDeeper Dive Leases. Overview
Deeper Dive Leases Presented by: Shaun Johnson, CPA Dingus, Zarecor & Associates PLLC Overview Effective dates Big picture Objective, impact, and implementation Applicability and definition Initial recognition
More information10 TH European IFRS power and utilities roundtable
10 TH European IFRS power and utilities roundtable Victor Chan, Partner, EY 29 November 2016 European IFRS Power and Utilities roundtable IFRS 16 Leases: the journey so far November 2016 Agenda Overview
More informationLEASE ACCOUNTING UNDER IFRS 16 AND IAS 17 A COMPARATIVE APPROACH
78 LEASE ACCOUNTING UNDER IFRS 16 AND IAS 17 A COMPARATIVE APPROACH Lecturer PhD. Cristina Aurora BUNEA-BONTAȘ Constantin Brancoveanu University of Pitesti, Romania Email: bontasc@yahoo.com Abstract: In
More informationApplying the new lease accounting standard
Applying the new lease accounting standard In February 26, the FASB issued Accounting Standards Update (ASU) No. 26-, Leases (codified as Accounting Standards Codification Topic (ASC) 842). ASC 842 introduces
More informationIn December 2003 the Board issued a revised IAS 40 as part of its initial agenda of technical projects.
IAS 40 Investment Property In April 2001 the International Accounting Standards Board (the Board) adopted IAS 40 Investment Property, which had originally been issued by the International Accounting Standards
More informationLeases: A Comprehensive Update on the Joint Project
The Dbriefs Financial Reporting series presents: Leases: A Comprehensive Update on the Joint Project Bob Uhl, Deloitte & Touche LLP Trevor Farber, Deloitte & Touche LLP James Barker, Deloitte & Touche
More informationAccounting and Auditing Update. Staci L. Brogan, CPA, Shareholder Patricia R. Giudici, CPA, Senior Manager Schneider Downs & Co. Inc.
Accounting and Auditing Update Staci L. Brogan, CPA, Shareholder Patricia R. Giudici, CPA, Senior Manager Schneider Downs & Co. Inc. Agenda Overview of the standard setting agenda Revenue recognition Lease
More informationLease accounting is changing An insight with sectoral impacts
Lease accounting is changing An insight with sectoral impacts I Lease accounting is changing An insight with sectoral impacts February 2019 KPMG.com/in Foreword The International Accounting Standards Board
More informationLeases (HKAS 17) 23 January 2007
s (HKAS 17) 23 January 2007 Nelson Lam 林智遠 MBA MSc BBA ACA CFA CPA(Aust) CPA(US) FCCA FCPA(Practising) 2005-07 Nelson 1 s Case Star Cruises Ltd. (2005) stated: The adoption of HKAS 17 requires the Group
More informationLeases. (a) the lease transfers ownership of the asset to the lessee by the end of the lease term.
Leases 1.1. Classification of leases A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease
More informationLeases ASU September 20, 2017
Leases ASU 2016-02 September 20, 2017 Meet the Speakers Tonisha Spratte, CPA Senior Accountant Cherry Bekaert tspratte@cbh.com Matthew Mars Senior Accountant Cherry Bekaert mmars@cbh.com Agenda What is
More informationIn depth A look at current financial reporting issues
inform.pwc.com In depth A look at current financial reporting issues No. INT2016-01 Supplement What s inside: Overview... 2 Does the contract contain a lease?... 3 Components, contract consideration and
More informationLEASES WHERE ARE WE? Steve Rathjen
LEASES WHERE ARE WE? Steve Rathjen 267 256-3110 srathjen@kpmg.com Agenda Project status Lease definition and classification Lessee accounting Lessor accounting Presentation, disclosures, and transition
More informationIn-depth A look at current financial reporting issues
inform.pwc.com In-depth A look at current financial reporting issues No. INT2018-08 What s inside: Overview... 2 Is the contract a lease?... 3 Components, contract consideration and allocation... 5 Initial
More informationLease accounting scope & impacts
Leasing Lease accounting scope & impacts Scope What s in? All industries, all entities Arrangements that meet the definition of a lease Embedded leases within other arrangements What s out? Leases of:
More informationLease modifications. Accounting for changes to lease contracts IFRS 16. September kpmg.com/ifrs
Lease modifications Accounting for changes to lease contracts IFRS 16 September 2018 kpmg.com/ifrs Contents Contents Accounting for changes 1 1 At a glance 2 1.1 Key facts 2 1.2 Key impacts 3 2 Key concepts
More informationWhat private companies need to know about applying the new lease standard
What private companies need to know about applying the new lease standard In February 26, the FASB issued Accounting Standards Update (ASU) No. 26-, Leases (codified as Accounting Standards Codification
More informationLeases (HKAS 17) June 2006
s (HKAS 17) June 2006 Nelson Lam CFA FCCA FCPA(Practising) MBA MSc BBA CPA(US) ACA 2005-06 Nelson 1 s Case Star Cruises Ltd. (2005) stated: The adoption of HKAS 17 requires the Group to classify the land
More informationSri Lanka Accounting Standard LKAS 40. Investment Property
Sri Lanka Accounting Standard LKAS 40 Investment Property LKAS 40 CONTENTS SRI LANKA ACCOUNTING STANDARD LKAS 40 INVESTMENT PROPERTY paragraphs OBJECTIVE 1 SCOPE 2 DEFINITIONS 5 CLASSIFICATION OF PROPERTY
More informationFinancial Computer Systems Inc. (203)
Introduction to ASC 842 and EZLease Financial Computer Systems Inc. www.ezlease.net (203) 652-1375 The road to ASC 842 Begun in July 2006; joint project of FASB & IASB Primary purpose: Put lessee operating
More informationFRS 116 Leases: Through the Eyes of Auditors. Ng Kian Hui, Head of Audit & Assurance BDO LLP
FRS 116 Leases: Through the Eyes of Auditors Ng Kian Hui, Head of Audit & Assurance BDO LLP OUTLINE 1. FRS 116 Leases General Overview 2. Identifying a Lease 3. Determining the Lease Term 4. Recognition
More informationExecutive Summary. New leases standard Lessees
Executive Summary December 2018 The new leases standard focuses on increased transparency and comparability providing financial statement users with more information about an entity s leasing activities.
More informationLease & Finance Accountants Conference. September The Westin Charlotte Charlotte, NC
Lease & Finance Accountants Conference September 11-13 The Westin Charlotte Charlotte, NC H A N D O U T S Basic Principles of Lessors under ASC 842 Mamta Shori, Wells Fargo Equipment Finance Joe Sebik,
More informationEFRAG s Letter to the European Commission Regarding Endorsement of IFRS 16 Leases
EFRAG s Letter to the European Commission Regarding Endorsement of IFRS 16 Leases Olivier Guersent Director General, Financial Stability, Financial Services and Capital Markets Union European Commission
More information4/4/2018. GASB's New Leases Standard
GASB's New Leases Standard April 4, 2018 1 TO RECEIVE CPE CREDIT Participate in entire webinar Answer polls when they are provided If you are viewing this webinar in a group Complete group attendance form
More informationCA. Gopal Ji Agrawal
CA. Gopal Ji Agrawal 1. Scope 2. Key concepts 3. Accounting for leases 4. Other Lease Contracts 4. Disclosure 5. Appendix (s) 6. Questions October 1980 September 1982 IAS 17 Accounting for Leases Exposure
More informationIFRS 16 Leases February 2017
February 2017 Background... 4 Purpose and Scope... 4 Impact of New Leasing Standard on Lessees... 5 Statement of Financial Position... 5 Statement of Profit or Loss and Comprehensive Income... 5 Statement
More information